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Strategy 101
In Technology and Business on January 24, 2008 at 10:34 am
When it comes to addressing newly arrived competition, the key isn’t to eliminate the competitor (were talking about business, not war).
Even if you do manage to push a competitor out of business, another one will arrive soon enough. So you can never eliminate competition.
Now the real cool move is to somehow maneouver the newly arrived competitor to use your resources; ie. somehow lease out your resources to him (intercompany synergies at a market price).
this will deter the competitor from building their own infrastructure and will make them, in the long term dependent on you.
So in reality, both gain. You, the first mover gain income from the competitor, and the competitor is saved from costly expenditures in acquiring assets that already exist.
Attrition strategies, in the long term, don’t work. Make them join you, and don’t try to beat them (at least at face value).
